Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $290.41M
• Dividend Yield: 4.8%
• Average Volume (3M): 37.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -2.73%
• EPS Growth: -11.67%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 49,793
• 30 Day Avg. Volume: 37,758
• PEG Ratio: -1.15
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 19.36
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $30.00 ▲(10.38% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is anchored by historically strong financial quality and a conservative balance sheet, but it is pulled down by weak technicals (downtrend and negative momentum) and elevated uncertainty from the anomalous 2025 TTM profitability/cash-flow data. The dividend yield provides some support, though valuation is hard to assess with the reported P/E of 0.0.

Positive Factors

High gross and net margins

Sustained high gross and net margins indicate durable pricing power and efficient cost control in manufactured specialty metal products. That margin cushion supports long-term cash generation, allows investment in product quality, and helps absorb raw-material volatility across business cycles.

Conservative balance sheet

Very low leverage and a sizable equity base enhance financial flexibility and reduce refinancing risk. This conservative capital structure supports stable dividend policy, funds needed working capital or capex, and improves resilience to cyclical downturns in construction markets.

Strong distribution and specification position

A distribution-focused model plus specification-driven selection (codes/engineers/installer preference) creates durable demand advantages. Being specified in systems and sold through trade channels limits commoditization and supports repeatable sales across renovation and new-construction cycles.

Negative Factors

Multi-year revenue decline

Persistent year-over-year revenue declines across multiple years signal weakening end-market demand or loss of share. Reduced top-line scale can erode operating leverage, pressure margins over time, and constrain reinvestment capacity even if unit margins remain healthy.

Anomalous 2025 TTM zero profit/cash metrics

Reported zero profitability and cash-flow for the 2025 TTM is a material anomaly that undermines confidence in near-term earnings. Whether due to reporting gaps or an operational slump, this creates uncertainty for planning, dividend coverage, and assessing sustainable free-cash generation.

Volatile free cash flow

Irregular FCF undermines the reliability of internally funded growth or distributions. Volatility in cash conversion heightens funding risk during downturns, complicates capital allocation, and reduces the margin of safety despite low leverage and strong historical margins.

Omega Flex Business Overview & Revenue Model

Company Description

Omega Flex, Inc. (OFLX) is a leading manufacturer of flexible metal hose and braid products, serving a wide range of industries including aerospace, chemical processing, and oil and gas. The company specializes in the production of custom-engineered solutions that meet the specific needs of its customers, ensuring high quality and reliability. With a strong focus on innovation and customer service, Omega Flex offers a variety of products designed for high-pressure applications, including metal hoses, braid products, and associated fittings.

How the Company Makes Money

Omega Flex makes money primarily by manufacturing and selling flexible metal hose/piping systems and related components to the building-products and energy infrastructure supply chain. Its core revenue stream is product sales of flexible metallic gas piping and other specialty tubing assemblies, along with complementary fittings, connectors, and installation accessories that are sold alongside the tubing systems. The company typically sells through distribution channels (e.g., plumbing/HVAC and industrial distributors) and to other trade-oriented customers that supply contractors and installers; revenue is recognized from the sale of these manufactured goods rather than from recurring service subscriptions. Earnings are driven by unit volume and product mix (demand tied to new construction, renovation, and ongoing maintenance), pricing and raw-material input costs (as metal content affects margins), and the strength of its brand/specification position where products are selected by engineers, code requirements, or installer preference. Specific partnership details are null.

Omega Flex Financial Statement Overview

Summary

Historically strong profitability and margins (2020–2024) with very low leverage support a solid fundamental base, but multi-year revenue declines and anomalous 2025 TTM figures showing zero profitability/cash flow materially reduce confidence in current earnings power.

Income Statement

Annual results show strong profitability with consistently high gross margins (~61–63%) and solid net margins (~18–20%) from 2020–2024, indicating good pricing power and cost discipline. However, revenue has been in a multi-year decline (down each year from 2022–2024), and the 2025 TTM (Trailing-Twelve-Months) record shows zero profit metrics (gross profit/EBIT/EBITDA/net income), which materially increases uncertainty around current earnings power and lowers confidence despite the historically strong margin profile.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage across the period (debt-to-equity roughly ~0.01–0.06) and equity representing a large share of the capital base. Total assets and equity have remained fairly stable to up over time, supporting resilience. The main watch item is that the 2025 TTM (Trailing-Twelve-Months) data shows zero return on equity, which is inconsistent with prior years’ strong returns and suggests either a profitability drop or incomplete current-period data.

Cash Flow

From 2020–2024, cash generation was generally healthy: operating cash flow exceeded net income in most years (coverage ~1.10–1.30 in 2021/2023/2024), and free cash flow tracked net income closely (about ~0.90–0.97), implying good earnings quality and limited cash leakage. Offsetting this, free cash flow has been volatile (notably down in 2022 and 2024), and the 2025 TTM (Trailing-Twelve-Months) cash flow line items are reported as zero with a -100% free cash flow growth figure, which raises concerns about near-term cash generation or data completeness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	98.30M	101.68M	111.47M	125.49M	130.01M
Gross Profit	55.24M	62.26M	68.36M	78.31M	81.53M
EBITDA	18.29M	22.83M	26.90M	32.11M	36.08M
Net Income	14.83M	18.01M	20.76M	23.62M	26.20M
Balance Sheet
Total Assets	104.95M	105.89M	100.23M	97.68M	88.92M
Cash, Cash Equivalents and Short-Term Investments	53.23M	51.70M	46.36M	37.70M	32.91M
Total Debt	4.76M	5.28M	2.95M	3.21M	3.37M
Total Liabilities	20.95M	22.71M	21.38M	26.51M	28.37M
Stockholders Equity	84.19M	83.11M	78.69M	70.98M	60.35M
Cash Flow
Free Cash Flow	15.35M	18.85M	21.78M	14.30M	24.18M
Operating Cash Flow	17.17M	20.86M	23.42M	15.25M	25.15M
Investing Cash Flow	-1.82M	-2.01M	-1.64M	-942.00K	-971.00K
Financing Cash Flow	-13.73M	-13.53M	-13.12M	-9.49M	-14.87M

Omega Flex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Negative. The current price of 27.18 is below the 20-day moving average (MA) of 33.25, below the 50-day MA of 33.57, and below the 200-day MA of 31.52, indicating a bearish trend. The MACD of -1.78 indicates Positive momentum. The RSI at 30.13 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFLX.

Omega Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAYD	78 Outperform	$232.04M	18.70	15.75%	―	-3.64%	-4.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$217.05M	2.69	13.25%	0.95%	14.24%	-96.24%
PKOH	60 Neutral	$357.10M	12.14	8.13%	2.32%	-3.90%	61.80%
LXFR	60 Neutral	$314.62M	11.56	13.57%	3.70%	3.36%	57.40%
OFLX	59 Neutral	$290.41M	-6.51	―	4.80%	-2.73%	-11.67%
BW	59 Neutral	$2.02B	-18.51	14.80%	―	-38.45%	-148.99%